If renewables are now so cheap, why do they still need government subsidies and mandates?
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Good question. Markets can be very efficient but one weakness is externalities, e.g. pollution. https://en.wikipedia.org/wiki/Externality … A standard way to address externalities while preserving markets is via taxes or subsidies. That way, is often more efficient than direct regulation.
Yes, but if renewables are cheaper they should prevail even without externality taxes and subsidies. Unless the problem is that they're worse (e.g., less reliable, hidden costs, etc.).
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There's a continuum of uses. When there are externalities, markets do not settle on the optimal set of choices (except in corner solutions). Taxes and subsidies allow the "invisible hand" of decentralized business and consumer choices to settle on the optimal mix of uses.
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Yes, and what I'm pointing out is that, since even with these taxes and subsidies renewables are overwhelmingly not being chosen by the market, they're a lot worse than they're made out to be.
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